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If you’re nearing retirement and have fallen short of your savings goal, it’s not too late to play catch up with your finances.
In fact, the federal government wants to help, allowing you to make additional retirement contributions in your later years.
Catch-up contributions defined
The Internal Revenue Service allows individuals who are age 50 or older by the end of the calendar year to make extra pre-tax contributions to their work-sponsored retirement plan account(s), including their 401(k), 403(b), Salary Reduction Simplified Employee Pension Plan, or governmental 457(b).
For tax year 2026, the tax return you file in April 2027, the catch-up contribution limit is $8,000 on top of the $24,500 pre-tax limit for all savers. Under a change made in recent legislation, employees aged 60 to 63 who participate in these plans can make higher annual catch-up contributions of up to $11,250 to a workplace plan in 2026.
Catch-up contributions also exist for IRAs. In tax year 2026, those 50 and older may save an additional $1,100 to their traditional or Roth IRA, above and beyond the baseline $7,500 annual limit for all eligible workers.
SIMPLE IRA, or SIMPLE 401(k), plans permit catch-up contributions of up to $4,000 in tax year 2026 for those ages 50 to 59 and those who are age 64 or older, on top of the$17,000 limit for younger workers. A higher catch-up contribution limit applies for employees age 60 to 63 who participate in SIMPLE plans. For 2026, this higher limit is $5,250.
And finally, employees with at least 15 years of service may be eligible to make additional contributions to their 403(b) plan beyond the regular catch-up for those ages 50 and older. Also known as a tax-sheltered annuity (TSA) plan, a 403(b) is a retirement plan for some employees of public schools, employees of certain tax-exempt organizations, and certain ministers.
Ways to reach your retirement savings goals at age 50+
“Catch-up contributions are one of the most attractive means of saving for retirement,” said Melissa Labant, director of tax policy and advocacy for the American Institute of CPAs in Washington, D.C. “I don’t think most people are aware it exists.”
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Indeed, a 2026 survey by Vanguard found that “nearly all” employers offer catch-up contributions in their 401(k) plans, but only 17 percent of eligible employees take advantage.1 (Employers that sponsor 401(k) plans are not required to offer catch-up contributions, but a majority of them do.)
A few thousand dollars in annual pre-tax retirement savings may not sound like much, but it has the potential to accumulate quickly with the magic of compounded growth, said Labant. That can help to mitigate longevity risk, a serious threat to many baby boomers.
According to a recent Bankrate survey, 58 percent of Americans in the workforce said their retirement savings are falling short, with nearly 37 percent indicating that they’re “significantly behind” on their financial goals.2
Older workers are more likely to say they feel behind on retirement savings than younger workers.
- Gen Z: About 28 percent said they’re on track, while 46 percent said they’re behind.
- Millennials: About 21 percent said they’re on track, while 57 percent said they’re behind.
- Gen X: About 17 percent said they’re on track, while 69 percent said they’re behind.
- Baby boomers: About 24 percent said they’re on track, while 59 percent said they’re behind.
Catch-up contribution math
“It’s never too late to start saving,” said Labant.
For example, a 50-year-old earning $75,000 per year with no prior retirement savings could potentially boost their future 401(k) balance from $735,000 to $981,000 — an increase of $245,000 — by making catch-up contributions until their full retirement age at 67. That assumes they achieve a 7 percent average annual return and continue to max out their 401(k) until they retire.
Their account balance would be even higher if they take advantage of the new, higher catch-up contribution limit for those ages 60, 61, 62, and 63, which, again, is $11,250 for those who participate in a 401(k), 403(b), Salary Reduction Simplified Employee Pension Plan, or governmental 457(b).
Catch-up contributions yield another potential benefit as well, said Labant. They lower your taxable income in the year you contribute, which may render you eligible for deductions that were phased out at the higher income threshold, she said.
“Deferring that income could be advantageous because you are most likely in a higher tax bracket while working than when you retire,” said Labant.
Cruising into retirement home stretch?
Coming up with the cash to make extra contributions may be easier than you think.
Those nearing retirement are often in their peak earnings years and may have fewer demands on their income — their kids are finishing college and their mortgage may be paid. They may also be able to pay down debt and reduce their monthly spending to help stretch their retirement savings.
By saving a bigger piece of their income pie in the years leading up to retirement, those age 50 and older can help make up for lost time.
To further ensure a comfortable retirement, they may also wish to delay Social Security when they reach retirement age to boost their future financial benefit.
“Save as much as you can as early as you can, but if you haven’t saved enough don’t forgo this opportunity,” said Labant. “Check with your employer to see if they allow catch-up contributions and if so take advantage.”
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Frequently asked questions about retirement savings catch-up contributions
Q: How much can a 50-year-old contribute to a 401(k) in 2026?
A: In 2026, a worker age 50 or older can contribute up to $32,500 to a 401(k) — the $24,500 standard limit plus an $8,000 catch-up contribution. Workers ages 60–63 can contribute even more: up to $35,750, thanks to SECURE Act 2.0's enhanced "super catch-up" of $11,250.
Q: What is the IRA catch-up contribution for 2026?
A: For 2026, savers 50 and older can contribute an extra $1,100 to a traditional or Roth IRA, on top of the $7,500 base limit — for a total of $8,600. This is the first-ever increase to the IRA catch-up limit, which is now indexed for inflation under SECURE Act 2.0.
Q: At what age can you start making catch-up contributions?
A: You can begin making catch-up contributions in the calendar year you turn 50 — even if your 50th birthday is December 31. The same age-50 threshold applies to 401(k), 403(b), governmental 457(b), and IRA accounts.
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This article was published in December 2017. It has been updated.
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1 Vanguard, “How America Saves 25th edition,” June 2026.
2 Bankrate, “A Majority of American Workers Say They’re Behind on Retirement Savings,” Sept. 24, 2025.
